Mattie McGrath (Tipperary South, Independent)
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153. To ask the Minister for Social Protection her views on whether the minimum hours in employment condition of the family income supplement scheme is a barrier to those taking up low-paid employment or continuing in low-paid employment; her views on whether it is equitable that a person working 30 hours per week is entitled to a family income supplement while a person working 15 hours per week is not entitled to a family income supplement or any other social welfare payment due to the hours of work; the options available to a person whose hours of employment have been reduced below the minimum hours of employment and where he or she does not qualify for a jobseeker's payment as the hours of employment mean that the person is not available for work; if she will consider this situation and review the minimum hours requirement; and if she will make a statement on the matter. [43417/13]

Joan Burton (Dublin West, Labour)
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The family income supplement (FIS) is an in-work support for employees with families on low earnings, who otherwise might be at risk of financial poverty. FIS also preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he or she were unemployed and claiming social welfare. Expenditure on FIS for 2012 was of the order of €224 million in respect of some 32,000 families. The estimated expenditure for 2013 is expected to be €229 million.

To qualify for payment of FIS, a person must be engaged in full-time insurable employment which is expected to last for at least 3 months and be working for a minimum of 38 hours per fortnight or 19 hours per week. Furthermore, the average family income must be below a specified amount which varies according to the number of qualified children in the family. The “hours worked” eligibility criterion has been reduced significantly since the introduction of the scheme in 1984, from 30 hours per week to 19 hours per week in 1996. Further reducing the “hours worked” requirement would have expenditure implications. It is also important that FIS does not inadvertently subsidise unsustainably low earnings or encourage employers to offer minimal hours of employment.

For low income workers with less than the minimum hours of employment for FIS and working on a casual basis up to and including 3 days per week, jobseeker’s schemes provide in-work income support through daily disregards and tapered withdrawal of payments.

Creating jobs and reducing unemployment are key challenges facing the Government. The tax and social protection systems have a part to play in addressing these issues and in ensuring work is remunerative. To this end, I established an Advisory Group on Tax and Social Welfare with the aim of harnessing expert opinion and experience in order to address a number of specific issues. The Group is currently examining the issue of working age supports. In this regard the Group is considering how employment incentives might be improved. Among the issues being examined by the Group include atypical working patterns in the context of jobseeker’s schemes, and the role in-work supports, such as FIS, should play in facilitating people to move from welfare into work.